What must an Angry Chickz franchisee do to maintain their protected area?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to Section 2.4 and provided that Franchisee is in full compliance with this Agreement and all other Agreements between Company (and its Affiliates) and Franchisee (or any of its Affiliates), then during the Term, neither Company nor its Affiliates will operate, or authorize any other individual or Entity to operate, a Dine-In Restaurant, the physical premises of which is located within the Protected Area, except for Restaurants located at Non-Traditional Venues and as otherwise permitted in Section 2.4.
Franchisee acknowledges and agrees that the territorial rights provided in this Section 2.3, do not provide Franchisee with exclusive rights with respect to any particular customer or potential customer, nor do they restrict Company or any of its employees, Affiliates, representatives, franchisees, licensees, assigns, agents and others from accepting orders (including catering orders) from persons within or outside the Protected Area through online food ordering platforms and other systems and delivering or fulfilling such orders to customers or others located within the Protected Area.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, a franchisee must be in full compliance with the Franchise Agreement and all other agreements between Angry Chickz and the franchisee to maintain their protected area. During the term of the agreement, Angry Chickz will not operate or authorize others to operate a Dine-In Restaurant within the franchisee's protected area. This protection excludes restaurants located at Non-Traditional Venues, as detailed in Section 2.4 of the agreement.
It is important to note that the territorial rights granted do not provide exclusive rights to any specific customer or potential customer. Angry Chickz retains the right to accept orders, including catering orders, from individuals both within and outside the protected area through online platforms and other systems. They can also fulfill these orders to customers located within the protected area.
Angry Chickz also reserves various rights, including the ability to develop, own, and operate restaurants outside the protected area, regardless of their proximity. They can also operate businesses that offer goods and services within or outside the protected area, excluding restaurants within the protected area unless at Non-Traditional Venues. Additionally, Angry Chickz can operate businesses under different names, regardless of their proximity to the protected area or whether they compete with existing restaurants.
These stipulations mean that while Angry Chickz grants a protected area, the franchisee's exclusivity is limited. The franchisee must consistently adhere to the agreement terms to maintain this protected area, but they will still face potential competition from Angry Chickz through various channels and locations outside the traditional Dine-In Restaurant model. Franchisees should be aware of these limitations and consider them when evaluating the potential market and competition within their protected area.